WEST LEVEL 2 SPIRITS EXAMS TESTED AND CONFIRMED A+ ANSWERS QUESTIONS AND ANSWERS

WEST LEVEL 2 SPIRITS EXAMS TESTED AND CONFIRMED A+ ANSWERS  QUESTIONS AND ANSWERS

Level 3 Finance and Accounting In- class Exam.

• Identify the four functions of money

One function is store of value Second function is medium of exchange Third function is unit of account Fourth function is legal tender

• Describe two functions of money

One function is store of value it’s when the value of money doesn’t change no matter how long you have held that money for

Second function is legal tender it’s when it is a valid form of payment in a specific country

• What legal tender is available in the England and Wales in the form of notes

£5, £10, £20 and £50

• What legal tender is available in the England and Wales in the form of notes

£5, £10, £20 and £50

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• State 4 reasons to plan your finances

One reason is to stay out of debt Second reason is you can set financial goals Third reason is you can save for retirement Fourth reason is you can stop yourself from overspending

• Outline Identify 2 ways to pay

Cash and debit card

• How many stages are in the life cycle?

there five different stages in life

• State the different life stages

Childhood, Adolescent, Young Adult, Middle age and Elderly

• Explain the financial needs AND The implications of different life stages…

Childhood:

The need is limited the are also reliant on parents will buy sweets or toys. May be encouraged to save or parents or grandparents may set up savings account for you into which they make regular payments and may rely on pocket money

Adolescent:

The need are they want to be more independent and slightly less reliant on parents as they may socialise away from family. They may look for a part-time job, Still partially reliant on pocket money.More likely to receive cash as gifts and may be willing to save up small amounts of money to make a big purchase

Young Adult:

The needs are they might start university or a career also looking to be more independent.Might buy a car or renting or buying a flat or house and looking to settle down and may start family or consider marriage. They might acquire a student loan for university or borrow money for a car or purchase one on finance. Maybe take out a mortgage and start to earn money to support self and others. Able to issue credit and debit cards

Middle age:

The needs are to support family. Maybe saving for children's futures, e.g. university or weddings and looking to improve lifestyle. Enjoy having access to additional money to spend on luxuries such as holidays. Has saving accounts for specific purposes. Is paying a mortgage also planning for own future through pensions and retirement plans. Likely to be at the stage of life when income peaks but matched with high expenditure

Elderly:

The needs are fewer dependants and may downsize e.g. move from family home to smaller retirement home. Fewer financial needs for assets but may be higher for services such as health care.Mortgage payments stop or become lower. Less income as reliant on a pension rather than salary

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• State 5 payment methods.

Cash, Debit card, Credit Card, Bank Transfers and mobile payment

• Describe the purpose of a standing order etc?

The purpose of standing order is a method of making payments, where an individual instructs their bank to pay a business a fixed amount of money and the one in control of the money has a decision whether to send money or not.

• Explain three benefits of paying by credit card?

One benefit is you earn rewards such as cash back or points.Second benefit is protection against credit card fraud.Third benefit is credit score information for free.

• What is the difference between Direct Debit and Standing order?

Direct Debit can only be set up by the organisation to which you're making the payment. Normally, you sign a agreement that gives the company permission to take funds from your account in an agreed way like a monthly phone bill. It normally confirms who's receiving the payment, the account to be debited

Standing order is a regular payment that you can set up to pay other people, organisations or transfer to your other bank accounts. You can amend or cancel the standing order as and when you like.

• What are premium bonds?

Premium Bonds are an investment product issued by National Savings and Investment. Unlike other investments, where you earn interest or a regular dividend income, you are entered into a monthly prize draw where you can win between £25 and £1 million tax free.

• What is insurance?

a means of protection from financial loss in which, in exchange for a fee, a party agrees to guarantee another party compensation in the event of a certain loss, damage, or injury If you need a professional to complete your college homework at a small fee, then reach out to Datedhomeworks.com